The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support
to international institutions.

The New York Fed engages with individuals, households and businesses in the Second District and maintains an active dialogue in the region. The Bank gathers and shares regional economic intelligence to inform our community and policy makers, and promotes
sound financial and economic decisions through community development and education programs.

The Federal Reserve created the Term Asset-Backed Securities Loan Facility (TALF), to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by auto loans, student loans, credit card loans, equipment loans, floorplan loans, insurance premium finance loans, loans guaranteed by the Small Business Administration, residential mortgage servicing advances, or commercial mortgage loans. Eligible borrowers must use a TALF Agent, which will act as agent for the borrower, to access the TALF and must deliver eligible collateral to the New York Fed’s custodian bank.

The following operations announcement pertains to new issue and legacy commercial mortgage-backed securities:

Operation Announcement

Subscription Date:

October 21, 2009

Closing Date:

October 29, 2009

3-Year Maturity Date:

October 29, 2012

5-Year Maturity Date:

October 29, 2014

Facility Open:

October 21, 2009 8:00 a.m. ET

Facility Close:

October 21, 2009 3:00 p.m. ET

Administrative Fee:

20.00 basis points

Eligible Collateral:

CMBS1

Loan Term:

3 or 5 years

Rates will be set at 12:00 p.m. ET on October 20, 2009

Haircuts for New Issue CMBS and Base Dollar Haircuts for Legacy CMBS:

CMBS Average Life (years)

Sector

0-5

Commercial Mortgage

15%

For newly issued CMBS with average lives beyond five years, collateral haircuts will increase by one percentage point for each additional year (or portion thereof) of average life beyond five years. For legacy CMBS with average lives beyond five years, base dollar haircuts will increase by one percentage point of par for each additional year (or portion thereof) of average life beyond five years. No CMBS may have an average life beyond ten years.